SABMiller plans a new brewery in Tanzania

According to Bloomberg, SABMiller is planning a new beer plant in southern Tanzania in the near future. No further information on the location was provided, however the new brewery will most likely be set up in Mbeya or Iringa, the main towns in southern highlands.

Due to rise in global commodity prices, and to make beer more affordable, the giant beer maker is planning to produce more cheaper, locally- influenced beer brands such as Chibuku Shake Shake and Eagle throughout Africa. Using local ingredients such as sorghum and cassava, the home-brew beer market in sub-sahara (excluding South Africa) is estimated to be valued at $3B, almost double the value of industrial beer market drinkers.

According to the company’s third quarter results, “Tanzania delivered larger volume growth of 4% [compared to other countries in Africa] despite infrastructure challenges”. Tanzania Breweries Limited (TBL) is the local subsidiary for SABMiller in the country.